Heartland Oil and Gas Corp. (OTC BB: HTOG) (FWB: HOCA) gained nearly 9% Thursday on an OTC Bulletin Board high 139.5 million shares – nearly 4X the outstanding share count as of HTOG’s most recent filing – traded on news that the company has discovered a well yielding nearly 65 barrels of oil per day on one of its properties.
The best part of the story is that HTOG also stated plans today to commence drilling on the remaining 500,00 acres it owns under lease in the area. For a point of reference, HTOG sold $521,982 of natural gas during the three months ended March 31, 2008 and logged total revenues of approximately $547,000 with a net loss of about $847,000. As of the last filing there are 42.2M shares out.
HTOG is Trading Like a Mad Man
The stock has been trading like a madman as of late, in regards to both volume and share price. Just one month ago, shares closed at a recent low of $.0025. The stock saw a recent high of $.015 today, nearly doubling yesterday’s low price of $.0078 and breaking out of sub-penny range for the first time in about a month. In regards to volume, the stock has traded more than 2 billion shares in the past month.
Parent Company UPDV Presents Another Interesting Play
Universal Property Development (OTCBB: UPDV – News) is Heartland’s parent company. The stock closed today up more than 13% on volume of 38 million shares and was the 5th most heavily-traded on the BB. UPDV and HOTG’s 3 month charts look eerily similar other than UPDV not bouncing back as high in certain instances in comparison to its portfolio asset.
UPDV logs significantly higher annual revenues ($30M in ‘07) than HOTG, but also packs a much heftier bottom line deficit (‘07 Net Loss of $117M). With just over 107M shares out, UPDV represents a compelling low-cost play on the booming oil & gas sector. Despite a struggling bottom line, the company has recently made the transition from start-up to established industry competitor with a blistering year-over-year revenue growth rate and significant energy-related assets.
HTOG Should be on Your Radar Screen
In our opinion, HTOG’s recent trading activity and operational developments warrant a second look tonight and a spot on your watch list tomorrow morning.
This situation reminds me a lot of the one currently transpiring at Quest Minerals & Mining (OTCBB: QMNM). Day traders and flippers appear to be settling for modest gains again and again rather than letting the stock run despite massive buying interest. Either way, I’ll be very curious to see how things unfold on Friday with positive news flowing, the stock now priced above a penny, and the potential that some weaker hands were taken out with Thursday’s high volume.
I’ll also have my eye on UPDV as its trading mimics that of HOTG quite closely and the company stands to gain a great deal from the success of its portfolio subsidiary.
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